Monthly Archives: September 2011

The Florida Fair Foreclosure Act is making headlines. It’s no secret that the Florida courts are clogged with homeowners and banks wrestling over foreclosed homes. Florida lawmakers seeking to relieve the burden on the court system are looking to streamline the process with a new bill. The Palm Beach Post reports Rep. Kathleen Passidomo, R-Naples, is shopping for input on her draft bill, the Florida Fair Foreclosure Act. The bill seeks to make several key changes to the laws that she hopes would clear some of the Florida foreclosure backlog.

Some key changes include:
* In exchange for giving up their right to pursue a deficiency judgment, banks could foreclose on homeowner 120% or more underwater on their home without putting the house up for auction.
* Uncontested foreclosure cases would need to have a final judgment rendered within 45 days.
* Homeowners challenging a foreclosure can only ask for monetary damages. They would not be able to sue for repossession of the home.
* Banks must detail their right to foreclose on a home if the bank note is lost.

The bill sounds good on the surface, but foreclosure defense attorney and South Florida Law Blog publisher Roy Oppenheim thinks homeowners are still drawing the short stick in this deal.

“It’s fair to the people who are able to lobby the legislature, it’s not fair to the homeowner,” said Oppenheim, senior partner with the Weston-based Oppenheim Law. “The biggest problem I have is there is a sense in this that we can trust the banks in terms of bringing these actions. The irony is that time and time again we’ve seen that we can’t trust them.”Attorney Lynn Drysdale of Jacksonville Area Legal Aid also expressed reservations about the bill, noting that borrowers who were attempting to negotiate a loan modification with their bank may still have their homes taken from them under the 45 day fast track if they are on a dual track for loan modification and foreclosure.Continue reading→

The South Florida Business Journal caught up with Weston Title and Oppenheim Law to get Roy Oppenheim’s opinion on a recent mortgage deal.
Banks giving their employees sweetheart deals on financial products is nothing new. Recently, Great Florida Bank COO, Masood Ghomeshi experienced one of the perks of being a bank employee by landing a loan modification that many consider to be a good deal. According to sources, Ghomeshi’s was able to change the terms of his $652,000 home loan with Great Florida Bank so that he is only required to pay the interest on the loan for the next three years. This will effectively reduce his monthly mortgage bill by $1,500 every month.
But foreclosure defense and real estate attorney, Roy Oppenheim, disagrees that Ghomeshi got as good a deal as everyone thinks. He has seen other people get better interest rates than those afforded to Masood Ghomeshi. Additionally, “Many people can’t get this deal because they can’t get the attention of banks,” says Oppenheim. In order to get their bank to work with them, Oppenheim says most people have to default on their loans. This doesn’t appear to be the case with Ghomeshi.
Terrence Brown, a spokesperson for the bank, stated that Great Florida Bank has a loan modification program available for their customers. However, according to banking attorney Andrew Hall, the bank must make the same terms they gave Ghomeshi available to all of their customers. Additionally, since it is an insider loan over $25,000, the deal must be approved by the bank’s board.Continue reading→

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This is our economy and it’s time for us to take charge. Agreed? Read on.

From time to time the South Florida Law Blog invites people who I respect and are friends to post a blog. I introduce you to my dear friend William McCarty, an attorney who lives in the DC area.

“You can always count on Americans to do the right thing—after they’ve tried everything else.”

Winston Churchill.

After three years of record low interest rates and $2.5 trillion dollars of deficit spending we still are no closer to jump starting a self sustaining recovery. Job creation is very weak, housing contracts are anemic despite historically low interest rates and prices, and the stock market is erratic and indecisive because it trades off of short term news rather than long term fundamentals. Even if we don’t have a double dip recession, a 2% or lower growth rate means that unemployment is actually increasing because we’re not creating enough jobs to keep up with our population growth.

We haven’t been able to jump start a self sustaining recovery because we cannot replace the unsustainable phantom wealth of rapid home equity appreciation, quick stock market gains and easy credit with the unsustainable phantom wealth of printed money.

So now we have to face facts:
1. Adjusted for inflation, individual income has been flat for the past ten years and real buying has actually gone down
2. In the near and long term, either taxes will go up or services will go down or both
3. Health care and college costs continue to increase twice as fast as our incomeContinue reading→

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Oppenheim Law’s most popular videos and blog posts are on the topic of deficiency judgements. So, by popular demand, we will continue to provide news and insight on this topic.

Understanding deficiencies and the Florida rules which pertain to them are key to avoid getting a deficiency judgment.

What is a Deficiency?

The unpaid mortgage debt associated with a residence is a deficiency. A bank can foreclose and force a judicial sale of a home if the mortgage borrower fails to pay the associated mortgage debt. The deficiency is the difference between the proceeds from the sale and the remaining mortgage loan balance. A deficiency can also result from a short sale, which is an alternative to foreclosure.

What are the Florida ‘Rules’ on Deficiencies?

The rules pertaining to deficiencies differ from state to state. A deficiency judgment is when the bank is granted a court order against the borrower to collect on the deficiency amount. In Florida, if the bank is successful in obtaining a deficiency judgment, it will be recorded in the public records and collectable for up to twenty years. Until the remaining debt is paid, the bank can garnish your wages, bank accounts, and even collect against your estate after you die.

However in other states, all a bank can do is foreclose on your house. Although your credit score will be lowered, in these states they can’t come after you for the deficiency.

If you live in Florida or any state where assets can be seized, it’s crucial to get ahead of the situation. So what should you do?Continue reading→